The cryptocurrency market this week has been disappointing for the bulls. After what seemed to be an important daily close on the night of Monday, June 14th, when Bitcoin printed a green candle closing above $40k, successive red candles followed, causing BTC to return to previous lows towards the end of the week. This fall in price had its reverberations across the cryptocurrency market, as numerous virtual assets experienced bearish movements in price.
Elrond (EGLD) has remained below the resistance at $100, having broken a triangle pattern to the downside on June 7th. It is currently trading in the $75-80 range, and should it break down below this range, it could possibly reach the $67 support level. It has experienced a dip of 70% from its highs in April, after rising from lows of under $10 in November 2020.
Hedera (HBAR) has maintained its bearish trend since mid-March. Currently trading in the $0.15 to 0.20 range, it is currently operating in the Fibonacci golden pocket (61.8-65%) retracement zone, having risen to $0.46 on March 15thfrom its November 2020 lows at under $0.03. It is unclear at this stage whether its current formation would indicate a bullish falling wedge in the big picture, or only a bearish channel signifying further drops in price in the short term. A drop below the $0.15 support level could give credence to the latter possibility, while holding above this level could be a sign of re-accumulation in the market before a move to the upside.
Terra (LUNA) has been consolidating in the $5-8 range in the past few weeks. The support level at $5.34 is particularly important to consider, as it is notable that no candle has closed below this level on the daily chart in the current period. Buyers have been keen to enter at this price, causing successive lower shadows in the daily candlesticks for the virtual asset. Yet, the direction of the coming pattern breakout is unclear at this moment in time.
(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)
